Anti-Dumping Duty

Not about constipation. Instead, it's about foreign trade.

An anti-dumping duty ("duty" equals "tax" here) seeks to even the playing field when an imported good is offered at a price cheaper than the fair-value market price. This usually happens when a product gets help from subsidy programs in its home countries. Basically, the government subsidies a product they plan to export, so that the manufacturer can offer it in a foreign country at a cut-rate price. The goal is to steal market share.

For the country getting dumped on, it means domestic manufacturers can't make a profit...they either lose sales or have to sell at a loss to compete. So the anti-dumping duties are meant to counteract the dumping program.

As noted by the U.S. International Trade Commission, the Tariff Act of 1930 gives stateside industries the option of seeking relief in these instances. The Department of Commerce investigates to decide whether dumping is really taking place...and if it's harming a new or existing industry. The general rule of thumb is that imports must account for more than three percent of what is brought in in a year. If not, the investigation ceases.